Project Management

Prof. Raghunandan Sengupta

Department of Industrial and Management Engineering
Indian Institute of Technology - Kanpur

Module No # 1
Lecture No # 01
Introduction to Project Management

Good morning Good afternoon and good evening everybody so whenever you listen to these
lectures so depending on that time my greetings to you all I am RaghuNandan Sengupta from IIT
Kanpur in IME department I am going to start the course in the area of project management. So
project management as a course is very vast so I will just very briefly first go through the books
the reason I am I want to first go through the books is that will give you what type of concepts I
am going to follow?

I will obviously highlight which books are more specific to this course which are little bit more
advanced and henceforth and the basically go through the syllabus and discuss. And before I start
I am sure everybody gone through the syllabus everybody is aware so this would be about of
twenty contact hours my lectures over the videos in the NPTEL course.

So obviously I will try to basically bring different types of problem solving also in between but
over and about that as also refer to few of the problems sets which the students who are planning
to take this course can definitely solve and get a good understanding of project management as
such.
(Refer Slide Time: 01:39)
So the reference list which I am going to follow which is basically a collection and collation of
different types of notes which are prepared not very in depth in any field but it basically covers
in a general format. The main book which is very specific to the Indian audience is the first one
which is by Prasanna Chandra published by Tata McGrow Hill is basically known as projects.

It covers all the topics related to project management related to PERT which is program
evaluation review technique CPM which is critical path method then here it has the concept of
how you are trying to basic and analyze a project from the internal rate of return expected value
and henceforth so it is space and it has a lot of problems which are solved and cases which gives
a good preview about what concept of project management is.

A very good book but old book in the market is the second one which is Levy and Wiest
basically is called the management guide to PERT and CPM. So it is little bit advanced book but
condenses all the topics which is generally are covered in project management and it does not
obviously cover few of the topics which I am going to discuss or talk within another few minutes
so basically main focus is that apart from PERT and CPM.

What is basically how you find out the time taking to finish a project if you crash a project what
is overall cost involved and what is the marginal rate of the cost of the projects and so
henceforth. So the cost crunch can be from the point of view of the money can be from the point
of your resource constraints and so henceforth. The third, fifth and the sixth book are in general
in nature if you see this the slides which is the third one is the lowest one the fifth is the Morris
and six one is the Philip one.

I want to talk to you about this book which is Moder and Philip which is a little bit old book as
like in line with Levy and Wiast but it has got a very in depth analysis from the mathematical
point of view of the concept of project management and obviously it consist the concept of how
precedence diagrams which will come consider later on that.

How they are considered in details how operation research optimization framework is used to
analyze different type of problems and it covers in depth with respect to Levy and Wiast another
thing is that it has few problems which are solved some coding in the concept of slam. Slam is
basically a simulation package obviously we would not use it here but I just want to mention that
it cause has some and codes in the slam concept this book which is the Moder Philip one.

And last but not the least if you see the book which is the seventh in number but Pritzkar Alan
Pritzkar it is basically covered a whole different topic of Q-GERT where precedence diagram all
these concepts are there but cyclicity comes into the picture such that for any very big project
you are able to analyze those projects from the point of view of Q-GERT and try to solve them
accordingly.

So obviously our flow would be mainly from the basic topics then go into the concept of
precedence diagram in a more details and obviously before that we will cover PER CPM and
then go into the Q-GERT but main focus would be the former part. What will try to cover
obviously these slide that does not have that I will try to be very brief considering that you have
already seen the same syllabus.
(Refer Slide Time: 05:47)
It will basically consider what we mean by projects? How projects can basically be analyzed?
And what are the basic general characteristics in the project then we will come to the concept of
Gantt Charts.

How the Bar charts are basically analyzed in order to understand the successor and proceed is the
procedure of the other jobs so which jobs comes before which jobs comes what are the
relationship between the jobs and in activities then we will consider the concept of activity on
node and activity on arc concepts activity means the task which you are going to do.

So obviously there are different type of notions how you depict them pictorially so it can be there
from the concept of arc or from the concepts of nodes. Then we consider different two main
types of network concepts which are used in trying to basically analyze projects which is as I
said in the beginning is the PERT and the CPM.

What are main difference of the PERT and CPM? I will consider that later on. Then how apart
from deterministic time frame work how you consider the probabilistic time framework work the
concept of most pessimistic time, most optimistic time, the average median time.

Why median is taken and not mean I will consider that also then we will consider what type of
different about distributions are considered in in the area of networks or project management on
how it is relevant how you try to find out the average time taken to finish a project what is the
slack?

What are the dummy activities? So we will consider all these things in details then we will
slowly consider that what is the critical path or critical time taken to finish a project. And how it
has an effect on overall resource constraints because we will consider till now then the Fag end
of the course that all the concept of basically trying to analyze a project considers that there is no
resource constraints that means either man or material amount of money are not the important
factor what is important is the time.

Now the moment you basically overflow your time these consequence of more resources is being
used, more manpower is being used, more money being used obviously comes into the picture.
And if you want to basically crash a job crash means basically shorten the time duration of the
job considering that it needs to be done much beforehand. So how it basically affects our overall
resource constraints will be considered.

We will only solve these problems on a simplistic notion using the diagrams only not go into the
actual solution of the problem from the optimization point of view. Even though I will try to give
you some flavor of how the optimization problems are basically formulated in order to solve this
type of problems and then in the fag end of the course provided it is basically have a safe having
a sink with how we are proceeding.

I will try to cover come concept or basic algorithms and ideas and rules of sequencing and
scheduling which many not have any direct relationship with the project management but it will
give you some idea. How concept of sequencing and scheduling are utilized when you have
different types of jobs and different types of a machines means the entities which basically
process the job that can be a machine, that can be a tailor machine, that can be a outlet in the
bank where you are basically may delivering giving a check and getting the money.

So how they should basically be managed in order to basically look into the factor that how the
overall time or how the overall efficiency of the overall system can be increased. And to finish
this course apart from the problem solutions which we will do I will try to basically consider one
or two very simple cases which are relevant from the point of view of project management
mainly from the point of view of PERT CPM and if time permits I will definitely consider one to
the maximum possible two cases in the area of Q-GERT. But that is depending on how we
proceed?

So now coming to the basically coming to the general introduction so what do you mean by
projects? So for most organization and societies you have some work to finish. Now work need
not be basically repetitive it can be overall once concept of work which has to be framed in such
a way that the overall timing of the works are important critical what I am using the word for the
first time not the critical path method the critical word I am using which will be utilized later on
also.

Such that you want to finish the work considering some project completion or framework of time
and resource utilization is there in order to meet some deadlines of some work it can be either
building up a building it can be the building say for example finishing the modeling of the car it
can be building of the bridge it can be either the building up of the road whatever it is. Now to
give a brief background the concept of PERT and CPM and this precedence diagram concept
basically came into the force or came into the ideas of how we can utilize that.

During the US space program of Apollo and so henceforth where the amount of work need to be
done for one in one project that means there was only one project which has to be done and
hence the concept of PERT and CPM came. So if you basically read into the books you will
understand that the history of that how PERT CPM and project management came. So we will be
talking about building the latest G4 network.

In the G4 network in the sense like we will considering that how that the projects which you are
going to implement which have some deadlines how they can be implemented G4 network for
the smart phone designing a new composite material of a say for example a passenger aircraft or
car that is a project and we need to basically implement and try to basically utilize the concept of
project management in order to finish that work within time considering the resources which are
there.

It can be also related to a planning a major fund raising event like say for example some political
campaign is going on say for example some eradication of leprosy drive is going on or say for
example you want to basically float a product in the market and there is a deadline that the
marketing campaign should be over by that time. So these can also be termed as a project it can
be either engineering and construction of an oil field.

So you have a base in that has to be the drilled and oil has to be tapped such that it within a
certain time it has to be pumped out and then sold in the market. So obviously that can also be
considered as a project with different type of constraints and different type of outputs which are
of main consideration for the project manager or the person of the set of the persons you are
trying to analyze that project.

It can be also related to developing a high speed train so what are the requirements which are to
be done what is the time schedule so based on that you basically design a project for that. The
goal is basically to create in all these things which I mentioned it can be is to create of something
of value to address a business opportunity it can either from the social point course perspective it
can be from the business perspective and main end result is that it has to get some benefit.

When it can be social as I mentioned it can be from the financial point view also. So thus project
represent human accomplishment sometimes on a grand scale I say for example if you consider
the Hoover Dam project. So obviously that was also a project if you consider the project which
ISRO is for the Mangalyaan for the moon project whatever it is those are also project which can
be termed that where the concept of project management has been utilized in a big way.

So consider that you want to build you they were some huge amount of tasks needed to be done
in order to build the Bhakra Nangal Dam obviously that was also a project on a big scale. And
sometimes the project need not be very big they can be small but they can be complicated in the
sense that they can be loops inter loops and feedback loops as that the concept of PERT and
CPM which I had mentioned in the beginning do not consider the concept of looping being there.

So that means these feedback loops are not there which will be considered in the later part of the
course when we consider the concept of Q-GERT. So we with an introduction we consider all
those later on also. So different between production and projects so production is basically a
condition continuation production of say for example a similar type of cars which is being
produced or similar type of machine tool which is being produced or similar type of cloth which
is being produced in the garment factory.

So obviously that has some difference wind from the concept of our project so in what are those I
will just read it from the slides and I explain it.
(Refer Slide Time: 15:25)

As we proceed in manufacturing theory is distinction is made between the engineering and the
production. So you have different type of engineering concept which I used and then they are
basically being interpedently in the production concept. Engineering comprised both product and
production engineering so product can be basically trying to design the product and trying to find
out what are the essential features reengineering and so on and henceforth are considered it when
you are basically doing the product design as such in the under the ambit of engineering.
So these two cycles of basically product and production engineering I repeated for every new
and updated product and basically depending on the specific issues which are there in the market
you basically try to update that. Say for example the fuel tank design as to be done again for one
of the Bajaj Motorcycles. So it has to be done in such a way that it takes care of that or say for
example when you are trying to stitch a shirt and by being done by or a jeans being manufactured
by Arvind Mills.

Obviously there are some design parameters which have we take into consider depending on the
market trainer and what the people want so obviously that would be taken into consideration and
the new design features would be done. So obviously that goes into concept of production and
product design rather than being a one and one only project which is on standalone basis and
which has to be done on a single framework only one time.

The production can be repeated continuously they can mean batches or they can be just one. So
this concept of once when you do that a big project which would not be repeated again they will
try to basically bring the concept of project management. In production if it is continuous it is
referred to that the production line whereas in operations are continuous are repeated would not
be considered the concept of project management.

So you have only one flow obviously feedback would be there as I mentioned but this one flow
is on a standalone basis considering that it will be only done once. So hence the concept of
project management would be coming to the picture. If production is only one piece it is referred
to as one of a kind production thus the one of a kind production is actually only once when you
do that I have mentioned a few seconds back is basically a project.

Where the focus is on the unique product design which has been made and unique production
concept which will be used in order to implement that can be I am using the word ah but design
and production from the production part of view but it can be say for example project can be
implementation for marking strategy implementation.
Say for example of trying to basically come up with a new drug which is one of its kind only and
how it would be marketed or say for example you want to find out the efficiency of a drug in the
market and then basically plan your strategy accordingly how things can be done. So that is only
one time hence it will be basically termed as a project on a project management scale.

So where in the project the focus is on the unique product made only one contrast to the repeated
manufacturing concept which is used for the same product time and again in the engineering
concept.
(Refer Slide Time: 18:39)

So what we see in this slide is basically a typical production cycle you have a product
engineering so all the engineering. So all the engineering has been used the production concept
will be used production concept this that means you are using a drill machine it can be using a
lathe machine, CNC machine but they are being used in such a manner in a way that the job
repeatedly would be done time and again for the products.

Which are coming such that they would basically feed into the system line of production which
are sold in the market consumed or whatever it is? So after the production engineering the
production starts and once the production starts the reputation on the same set of procedures
which had already been fine-tuned would be repeated time and again.
So hence any variations which are which have already been considered in the concept of
production engineering and the product engineering beforehand are already there such that there
is no such concept of trying to change the overall production process as you go in producing the
material or the product.
(Refer Slide Time: 19:47)

Projects operate outside the bounds of these and outside the bounce of the organization normal
scheme of things. So they are as I mentioned they are only one effort at a time have to be done
only once but obviously there are different type of constraints which limits its efficacy says that
you want to basically plan it in such a way that you get the maximum benefit.

Benefit means that means time is a constraint issues is a constraint all these have to be
considered in the best possible way. So they offer an exciting alternative that is project
management to many of the repetitive ongoing systems which a firm. Thus projects are different
from other forms of organization processes and projects share the following characteristics which
many not be intrinsic part of each and every part generally they have the characteristics of any
project have these.

They are complex and they are unique means one at a time so once you finish the project that
could not be repeated in future. Complex in means that there different type of sequences of
products which have of a sequence of events have to be undertaken so the overall completion of
the project is accomplished. They have a very clear set of goals and clear set of a small set
accomplishment say for example I am trying to build a stadium so obviously it will be stated that
I want to use the stadium for a certain football tournament which is going to come up in 2018.

So obviously it would mean that my deadline of trying to finish up that project is fixed say for
example January thirty first two thousand eighteen based on that I try to find out that when
should the inauguration should be done and as I try to find out and go back I try to find out one at
a time when the foundation would be laid when the overall field should be set up how should the
stadium we set up such that that chairs the audio system the security system as required should
be setup.

So that they are unique in in nature such that one at a time they are completed you basically are
able to complete the whole project. So obviously there would be precedence diagram say for
example without finishing the overall ground work or laying the foundation of overall stadium I
cannot complete the whole work. So obviously it means those some jobs or some of the activities
are needed to be done in such a way there is a certain sequence of events which need to be
accomplished in order to basically finish the overall project.

They are limited by time, schedule and resources and budget so obviously we will consider this
point of budget schedule and resources later on but our main focus will be basically to consider
the concept of time as the main constraint. So our main constraint is that we will consider the
time as money and try to finish off any of the projects with in schedule time.

Such as that any change in the sequence of the events or say for example trying to squeeze or
crush of certain activity you are trying to basically utilize your sigma resources are done in such
a way that your main concern which is the time depending upon the which you want to finish the
project is taken into consideration with the primary goal. But it may so happen that in many of
the projects apart from the time resources or the budgets are also important.

So in that case how you basically consider the concept of budgets and the concept of basically
resources and they need to be brought into the picture after the time constants are taken into
consideration would also be considered but obviously in many of the cases always not in the
initial part that will be considered a simple very multi objective programming. Where the
resources along with the times are considered? In such a way that the weightages are given on
the concept of time, on the concept of resources in a budget.

Such that you are able to basically find a compromise such that it fulfills the criteria of the
overall project in all things which are important for you. So it need not be only time is important
it need not be only resources are important if both of them are important you make a balance
between them and try to basically finish your work accordingly.

Projects are very customer focus like customer in the example which I just mentioned few
minutes back is basically the stadium is to build why because of football tournament would be
held and if the football tournament is held your main focus are the customers is basically the
spectators who are going to come and watch it may be the society. Or say for example you want
build a hospital and your main focus would be to meet the demand of the healthcare which the
general public in the particular region has.

Or say for example you want to basically come up with a new drug consider in the area of
malaria or say for example in the area of HIV or say for example in tuberculosis you want to plan
it in such a way that your main goal which is basically to meet the requirement of the customers
which is the social structure such or people who are suffering from such diseases are taken care
accordingly.

It can be say for example if you want to have float project related to basically trying to come into
the market is certain bike it may be that your main goal is basically to come up with the unique
motorcycle or bicycle such that it basically gives the competition to your customers because your
main motive definitely can be to run your business in order to make profit.

So how you will basically try to optimize the project in such a way that it basically as a
maximum benefit on your overall cash flows on overall of your profit motivation and definitely
be a or criteria based on which the project could be taken. So in general to put use in very
qualitative framework without going to the concept of quantitative so obviously we will consider
a quantitative concept later on.
(Refer Slide Time: 26:03)

So project management is basically the application of knowledge, skills, tools and techniques to
project activities to meet a certain project requirement or criteria. So what are the requirements?
What are the criteria? We will consider that but in general we will first try to basically analyze
what is the project? And what are the general concept based on which the project is build up and
slowly consider what are the criteria based in which a project is evaluated?
(Refer Slide Time: 26:47)
So several technique apply to project planning activities say for example the concept of scope
management is their concept of risk management is there, risk I want to pause here. It does not
mean the concept of risk from the point of view of financial risk only it can be from the point of
view of what is the social impact of the project does it have a risk?

What is the overall impact of the environment? So does it have a risk or say for example what is
effect of the risk from the point of view of its implication on the company which is basically
trying to come up with the project. If it is say for example in my last example which I gave about
trying to come up with the (()) (27:18) with the new bike or a motorcycle it may have a huge
implication on the overall bottom line of the company.

So if the company is really banking on that product so obviously your main thing is basically
profit motive. So any risk prospective for the company would be the financial implication it may
face in case the project does not take off what does not pay that returns which the company
wants? So we will also consider later on the detailed work breakdown structure how the works or
the how the activities are broken down in components such that if gives you a good idea that
what are the building blocks for the overall projects?

So rather than concentrating on each and every activity at one go it may be better we consider
different blocks of activities such that concentrating on the blocks would give us a much better
macro view of how the project is done? Rather than going into the macro details at one go
immediately. Projects would definitely consider later on as I mentioned that time is important
that is true but cost perspective that how you can reduce the cost would also come into the
picture.

We will also consider the scheduling processes how the actual drilling processes the activities are
done and we will consider them in such a way that all the concept of precedence diagram all the
concept of relationship between the activities all the concept of which job should come before
which job should be coming later on how they can be taken up simultaneously or they can take in
our different points of time considering there is a time difference between two different activities
or jobs would also be considered the reason.
Why I mentioned the concept that how the time difference between two activities and the jobs
should be considered or are to the considered is that we later see that the concept that general
concept of how to fine of the slacks? Or how to find out the overall time duration of jobs are
there? We will have to basically have a look at different concept of how the precedence diagrams
would be done.

So we will also consider the Gantt, the PERT charts and how the controlling projects are done
and obviously we will consider that how the on value of the project can be utilized that. How do
you finish can be find out the expected value of the project and try to compare different project if
the overall scheme of the project is basically the goal is same. So if you want to compare that
project one is better than project two of vice-versa we will take that.

Taken together however there so all these concept taken together presents a powerful suit or a set
of tools based on which we will basically consider project management as such that over and
above the quantitative techniques we will consider that quality field of that also. So with this I
will end the first lecture and then as we start with the second lecture we will see that how we are
going to expand this concept in the later classes thank you